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AAR Corp. (AIR - Free Report) reported fourth-quarter fiscal 2024 adjusted earnings of 88 cents per share, which surpassed the Zacks Consensus Estimate of 86 cents by 2.3%. The bottom line improved 6% from the year-ago quarter’s level.
The company reported GAAP earnings per share (EPS) of 26 cents compared with 66 cents in the prior-year quarter.
AAR reported fiscal 2024 adjusted earnings of $3.33 per share, which surpassed the Zacks Consensus Estimate of $3.30 by 0.9%. The bottom line improved 16.4% from the year-earlier level.
Total Sales
In the quarter under review, AAR generated net sales of $656.5 million. The reported figure missed the Zacks Consensus Estimate of $660 million by 0.6% but increased 18.7% from $553.3 million recorded in the year-ago quarter.
The year-over-year improvement can be attributed to the acquisition of the Product Support business, strong demand for its new parts distribution activities as well as improved performance across its government program activities.
In fiscal 2024, AAR generated net sales of $2.32 billion, which came in line with the Zacks Consensus Estimate. The reported figure increased 16.5% from $1.99 billion recorded a year ago.
Segment Details
In the fiscal fourth quarter, sales in the Parts Supply segment totaled $260.3 million, up 9.1% year over year.
Repair & engineering reported sales of $216.4 million, up 51.3% from the prior-year period’s level.
Integrated solutions sales came in at $163.5 million, up 10.2% from the year-ago quarter’s reported numbers.
Expeditionary Services recorded sales of $16.3 million, down 30.3% year over year.
Operational Update
The company’s gross profit margin declined 10 basis points to 19.4% from the prior-year quarter. The improvement was primarily due to the termination of a commercial program during the quarter.
AIR’s adjusted operating margin increased from 7.8% to 9.3%, driven by a favorable contribution from the recently acquired Product Support business.
Selling, general and administrative expenses amounted to $94 million compared with $70.8 million a year ago.
Net interest expense for the quarter totaled $18.7 million compared with $4.7 million in the year-ago period.
Financial Details
As of May 31, 2024, AAR’s cash and cash equivalents amounted to $85.8 million compared with $68.4 million as of May 31, 2023.
The company’s long-term debt was $985.4 million as of May 31, 2024, up from $269.7 million as of May 31, 2023.
Hexcel Corporation (HXL - Free Report) reported second-quarter 2024 earnings of 60 cents per share, which improved 20% from the year-ago quarter’s figure of 50 cents.
The company’s net sales totaled $500.4 million, which beat the Zacks Consensus Estimate of $482 million by 3.8%. The top line also witnessed an improvement of 10.1% from the year-ago quarter’s reported sales of $454.3 million.
Textron Inc. (TXT - Free Report) reported second-quarter 2024 adjusted earnings of $1.54 per share, which surpassed the Zacks Consensus Estimate of $1.49 by 3.4%. The bottom line also improved 5.5% from the year-ago quarter’s figure of $1.46.
TXT reported total revenues of $3.53 billion, which missed the Zacks Consensus Estimate of $3.55 billion by 0.6%. However, the reported figure increased 3% from the year-ago quarter’s level of $3.42 billion.
An Upcoming Q2 Defense Release
General Dynamics Corporation (GD - Free Report) is set to report second-quarter 2024 results on Jul 24, before market open. The Zacks Consensus Estimate for earnings is pegged at $3.31 per share, which indicates an improvement of 22.6% from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for sales is pegged at $11.48 billion, which implies an increase of 13.1% from the prior-year quarter’s reported actuals.
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AAR (AIR) Q4 Earnings Surpass Estimates, Sales Rise Y/Y
AAR Corp. (AIR - Free Report) reported fourth-quarter fiscal 2024 adjusted earnings of 88 cents per share, which surpassed the Zacks Consensus Estimate of 86 cents by 2.3%. The bottom line improved 6% from the year-ago quarter’s level.
The company reported GAAP earnings per share (EPS) of 26 cents compared with 66 cents in the prior-year quarter.
AAR reported fiscal 2024 adjusted earnings of $3.33 per share, which surpassed the Zacks Consensus Estimate of $3.30 by 0.9%. The bottom line improved 16.4% from the year-earlier level.
Total Sales
In the quarter under review, AAR generated net sales of $656.5 million. The reported figure missed the Zacks Consensus Estimate of $660 million by 0.6% but increased 18.7% from $553.3 million recorded in the year-ago quarter.
The year-over-year improvement can be attributed to the acquisition of the Product Support business, strong demand for its new parts distribution activities as well as improved performance across its government program activities.
In fiscal 2024, AAR generated net sales of $2.32 billion, which came in line with the Zacks Consensus Estimate. The reported figure increased 16.5% from $1.99 billion recorded a year ago.
Segment Details
In the fiscal fourth quarter, sales in the Parts Supply segment totaled $260.3 million, up 9.1% year over year.
Repair & engineering reported sales of $216.4 million, up 51.3% from the prior-year period’s level.
Integrated solutions sales came in at $163.5 million, up 10.2% from the year-ago quarter’s reported numbers.
Expeditionary Services recorded sales of $16.3 million, down 30.3% year over year.
Operational Update
The company’s gross profit margin declined 10 basis points to 19.4% from the prior-year quarter. The improvement was primarily due to the termination of a commercial program during the quarter.
AIR’s adjusted operating margin increased from 7.8% to 9.3%, driven by a favorable contribution from the recently acquired Product Support business.
Selling, general and administrative expenses amounted to $94 million compared with $70.8 million a year ago.
Net interest expense for the quarter totaled $18.7 million compared with $4.7 million in the year-ago period.
Financial Details
As of May 31, 2024, AAR’s cash and cash equivalents amounted to $85.8 million compared with $68.4 million as of May 31, 2023.
The company’s long-term debt was $985.4 million as of May 31, 2024, up from $269.7 million as of May 31, 2023.
Zacks Rank
AAR currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Defense Releases
Hexcel Corporation (HXL - Free Report) reported second-quarter 2024 earnings of 60 cents per share, which improved 20% from the year-ago quarter’s figure of 50 cents.
The company’s net sales totaled $500.4 million, which beat the Zacks Consensus Estimate of $482 million by 3.8%. The top line also witnessed an improvement of 10.1% from the year-ago quarter’s reported sales of $454.3 million.
Textron Inc. (TXT - Free Report) reported second-quarter 2024 adjusted earnings of $1.54 per share, which surpassed the Zacks Consensus Estimate of $1.49 by 3.4%. The bottom line also improved 5.5% from the year-ago quarter’s figure of $1.46.
TXT reported total revenues of $3.53 billion, which missed the Zacks Consensus Estimate of $3.55 billion by 0.6%. However, the reported figure increased 3% from the year-ago quarter’s level of $3.42 billion.
An Upcoming Q2 Defense Release
General Dynamics Corporation (GD - Free Report) is set to report second-quarter 2024 results on Jul 24, before market open. The Zacks Consensus Estimate for earnings is pegged at $3.31 per share, which indicates an improvement of 22.6% from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for sales is pegged at $11.48 billion, which implies an increase of 13.1% from the prior-year quarter’s reported actuals.